Question

LLC's

Forum|Forum|4 years ago
March 24, 2022
1 reply
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My wife and I have two small businesses that are registered LLC's. I recently retired from my "real" job and am considering my options for Social Security. I am not yet at full retirement age so I am limited to my income regarding SS. Can much of the income from our LLC's be directed to my wife's SS# so that I don't impact my SS benefit should I decide to apply?

AmyC

Employee

Yes, there are things you can do to shift money. You could do a partnership or S corp with her having the higher percentage of ownership for the combined businesses. The IRS has a business center that helps choose the best business for you, see Small business. In fact, you can be an actual w2 employee.

You are wanting to reduce earning to avoid losing 1/2 or 1/3 of your benefit before reaching full retirement age. Once you reach full retirement age, your benefit is not reduced. See How Work Affects Your Benefits - Social Security. Your benefit is based on your earnings and continuing to work could boost your benefit. By the same token, more Social Security could mean a higher tax bracket while you are both working.

To see how your Social Security is taxed, see Publication 915. Up to 85% of your Social Security can be taxed based on family income. Use our Tax bracket calculator to determine the tax percentage.

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